Comparing Industrial and Commercial Bank of China (OTCMKTS:IDCBY) and Shinhan Financial Group (NYSE:SHG)


Industrial and Commercial Bank of China (OTCMKTS:IDCBYGet Rating) and Shinhan Financial Group (NYSE:SHGGet Rating) are both large-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Risk & Volatility

Industrial and Commercial Bank of China has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Shinhan Financial Group has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Dividends

Industrial and Commercial Bank of China pays an annual dividend of $0.69 per share and has a dividend yield of 5.9%. Shinhan Financial Group pays an annual dividend of $3.76 per share and has a dividend yield of 11.7%. Industrial and Commercial Bank of China pays out 23.5% of its earnings in the form of a dividend. Shinhan Financial Group pays out 58.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a summary of current recommendations and price targets for Industrial and Commercial Bank of China and Shinhan Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Industrial and Commercial Bank of China 1 0 0 0 1.00
Shinhan Financial Group 0 0 0 0 N/A

Valuation and Earnings

This table compares Industrial and Commercial Bank of China and Shinhan Financial Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Industrial and Commercial Bank of China $206.52 billion 1.01 $53.99 billion $2.94 3.96
Shinhan Financial Group $14.57 billion 1.14 $3.62 billion $6.48 4.97

Industrial and Commercial Bank of China has higher revenue and earnings than Shinhan Financial Group. Industrial and Commercial Bank of China is trading at a lower price-to-earnings ratio than Shinhan Financial Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Industrial and Commercial Bank of China and Shinhan Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Industrial and Commercial Bank of China 26.38% 11.39% 1.00%
Shinhan Financial Group 18.63% 8.17% 0.63%

Institutional & Insider Ownership

7.7% of Shinhan Financial Group shares are owned by institutional investors. 1.0% of Shinhan Financial Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Shinhan Financial Group beats Industrial and Commercial Bank of China on 7 of the 13 factors compared between the two stocks.

Industrial and Commercial Bank of China Company Profile (Get Rating)

Industrial and Commercial Bank of China Limited, together with its subsidiaries, provides banking products and services in the People’s Republic of China and internationally. It operates through Corporate Banking, Personal Banking, and Treasury Operations segments. The Corporate Banking segment offers financial products and services to corporations, government agencies, and financial institutions. Its products and services include corporate loans, trade financing, deposit-taking activities, corporate wealth management services, custody activities, various corporate intermediary services, etc. The Personal Banking segment provides financial products and services to individual customers. This segment’s products and services comprise personal loans and cards, deposits, personal wealth management, personal intermediary services, etc. The Treasury Operations segment is involved in the money market transactions, investment securities, and foreign exchange transactions, as well as in the holding of derivative positions. The company also offers e-banking services, including Internet, telephone, and mobile banking services; and investment banking, fund and financial asset management, trust, financial leasing, broker dealer, securities margin and trading, insurance, and other financial services. It operates 16,653 institutions, including 16,227 domestic institutions and 426 overseas institutions. Industrial and Commercial Bank of China Limited was founded in 1984 and is headquartered in Beijing, the People’s Republic of China.

Shinhan Financial Group Company Profile (Get Rating)

Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea and internationally. The company operates through six segments: Banking, Credit Card, Securities, Life Insurance, Credit, and Others. It offers retail banking services, including demand, savings, and fixed deposit-taking; checking accounts; mortgage and home equity, and retail lending; electronic banking and automatic teller machines (ATM); and bill paying, payroll and check-cashing, currency exchange, and wire fund transfer services. The company also provides corporate banking services, such as investment banking, real estate financing, overseas real estate and development project financing, infrastructure and structured financing, equity/venture investments, mergers and acquisitions consulting; securitization and derivatives services comprising securities and derivative products, and foreign exchange trading; and working capital loans and facilities loans. In addition, it is involved in treasury and investment activities in international capital markets consisting of foreign currency-denominated securities trading, foreign exchange trading and services, trade-related financial services, international factoring services, and foreign banking operations. Further, the company offers trust account management, securities brokerage, and asset management services, as well as leasing and equipment financing, savings banking, loan collection and credit reporting, collective investment administration, private equity investment, and financial system development services. As of December 31, 2021, it operated a network of 784 service centers; 5,234 ATMs; 7 cash dispensers; and 85 digital kiosks. Shinhan Financial Group Co., Ltd. was founded in 1982 and is headquartered in Seoul, South Korea.



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